Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2019

Accumulated Other Comprehensive Income (Loss)

The following tables present changes in the accumulated balances for each component of other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss):



	For the Three Months Ended June 30, 2019
	Derivative Instruments			Available-for-Sale Security			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of March 31, 2019	$	16,470		$	(4,670	)	$	(142,540	)	$	(707,194	)	$	(837,934	)
Other comprehensive income (loss) before reclassifications	3,254			(1,944		)	(618		)	(1,170		)	(478		)
Amounts reclassified from accumulated other comprehensive income (loss)	(2,492		)	—			1,242			—			(1,250		)
Net increase (decrease) in other comprehensive income (loss)	762			(1,944		)	624			(1,170		)	(1,728		)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2019	$	17,232		$	(6,614	)	$	(141,916	)	$	(708,364	)	$	(839,662	)

	For the Six Months Ended June 30, 2019
	Derivative Instruments			Available-for-Sale Security			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of December 31, 2018	$	11,411		$	(6,547	)	$	(142,763	)	$	(721,327	)	$	(859,226	)
Other comprehensive income (loss) before reclassifications	9,072			(67		)	(1,824		)	12,963			20,144
Amounts reclassified from accumulated other comprehensive income (loss)	(3,251		)	—			2,671			—			(580		)
Net increase (decrease) in other comprehensive income (loss)	5,821			(67		)	847			12,963			19,564
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2019	$	17,232		$	(6,614	)	$	(141,916	)	$	(708,364	)	$	(839,662	)



	For the Three Months Ended June 30, 2018
	Derivative Instruments			Available-for-Sale Security			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Loss, Net of Tax, as of March 31, 2018	$	(21,986	)	$	(2,879	)	$	(141,597	)	$	(572,687	)	$	(739,149	)
Other comprehensive income (loss) before reclassifications	17,652			(2,709		)	(2,899		)	(105,727		)	(93,683		)
Amounts reclassified from accumulated other comprehensive loss	4,786			—			3,968			—			8,754
Net increase (decrease) in other comprehensive income (loss)	22,438			(2,709		)	1,069			(105,727		)	(84,929		)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2018	$	452		$	(5,588	)	$	(140,528	)	$	(678,414	)	$	(824,078	)

	For the Six Months Ended June 30, 2018
	Derivative Instruments			Available-for-Sale Security			Defined Benefit Pension Plans			Currency Translation Adjustments			Total
	(In thousands)
Accumulated Other Comprehensive Loss, Net of Tax, as of December 31, 2017	$	(21,098	)	$	(2,799	)	$	(143,213	)	$	(614,676	)	$	(781,786	)
Other comprehensive income (loss) before reclassifications	12,333			(2,789		)	(3,107		)	(63,738		)	(57,301		)
Amounts reclassified from accumulated other comprehensive loss	9,217			—			5,792			—			15,009
Net increase (decrease) in other comprehensive income (loss)	21,550			(2,789		)	2,685			(63,738		)	(42,292		)
Accumulated Other Comprehensive Income (Loss), Net of Tax, as of June 30, 2018	$	452		$	(5,588	)	$	(140,528	)	$	(678,414	)	$	(824,078	)

The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of operations:



	For the Three Months Ended
	June 30, 2019			June 30, 2018			Statements of Operations Classification
	(In thousands)
Derivative Instruments
Gain (loss) on foreign currency forward exchange contracts	$	2,675		$	(4,767	)	Cost of sales
Tax effect of net gain (loss)	(183		)	(19		)	Provision for income taxes
	$	2,492		$	(4,786	)	Net loss
Defined Benefit Pension Plans
Amortization of prior service credit (a)	$	493		$	502		Other non-operating (income) expense, net
Recognized actuarial loss (a)	(1,735		)	(2,046		)	Other non-operating (income) expense, net
Settlement loss	—			(2,401		)	Other non-operating (income) expense, net
	(1,242		)	(3,945		)
Tax effect of net loss	—			(23		)	Provision for income taxes
	$	(1,242	)	$	(3,968	)	Net loss

	For the Six Months Ended
	June 30, 2019			June 30, 2018			Statements of Operations Classification
	(In thousands)
Derivative Instruments
Gain (loss) on foreign currency forward exchange contracts	$	3,602		$	(9,150	)	Cost of sales
Tax effect of net gain (loss)	(351		)	(67		)	Provision for income taxes
	$	3,251		$	(9,217	)	Net loss
Defined Benefit Pension Plans
Amortization of prior service credit (a)	$	986		$	1,003		Other non-operating (income) expense, net
Recognized actuarial loss (a)	(3,472		)	(4,363		)	Other non-operating (income) expense, net
Settlement loss	—			(2,443		)	Other non-operating (income) expense, net
	(2,486		)	(5,803		)
Tax effect of net loss	(185		)	11			Provision for income taxes
	$	(2,671	)	$	(5,792	)	Net loss

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(a)	The amortization of prior service credit and recognized actuarial loss are included in the computation of net periodic benefit cost. Refer to "Note 16 to the Consolidated Financial Statements—Employee Benefit Plans" of this Quarterly Report on Form 10-Q for additional information regarding Mattel's net periodic benefit cost.

Currency Translation Adjustments

Mattel's reporting currency is the U.S. dollar. The translation of its net investments in subsidiaries with non-U.S. dollar functional currencies subjects Mattel to the impact of currency exchange rate fluctuations in its results of operations and financial position. Assets and liabilities of subsidiaries with non-U.S. dollar functional currencies are translated into U.S. dollars at fiscal period-end exchange rates. Income, expense, and cash flow items are translated at weighted average exchange rates prevailing during the fiscal period. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within stockholders' equity. Currency translation adjustments resulted in a net gain of $13.0 million for the six months ended June 30, 2019, primarily due to the strengthening of the Russian ruble, Hong Kong dollar, and Mexican peso against the U.S. dollar, partially offset by the weakening of the Euro against the U.S. dollar. Currency translation adjustments resulted in a net loss of $63.7 million for the six months ended June 30, 2018, primarily due to the weakening of the Euro, Brazilian real, Russian ruble, and British pound sterling against the U.S. dollar.